111129 analyst & investor day 2011 complete final - … · • forensics: dna tests as key tool...

Analyst & Investor Day 2011Tecan Group AG

December 1, 2011

December 1, 2011 / p2 / Analyst & Investor Day

Willkommen!

Welcome!

Bienvenue!

Benvenuto!

Bienvenido!

ようこそ

欢迎大家!

Приемам

أْهًال و َسْهالً

Tecan Analyst & Investor Day 2011


• 7:45-8:20 Welcome Coffee• 8:30-12:45

CEO Welcome and IntroductionLife Sciences Business Vision & StrategyStrengthening the Core BusinessMarket Expansion and Brand LeverageMass Spectrometry in the Clinical LaboratoryFEMS – Front End to Mass Spectrometry Tecan’s Partnering BusinessUpdate on OEM ProjectsProject Acquisition PipelineInnovation at TecanSummary and Closing Remarks

• 12:45-13:45 Buffet Lunch • 13:45-15:00

Instrument DemosProduction TourTecan Integration Group

Today’s Agenda

Pre

sent

atio

ns+

Web

cast

On

Site

LSB

PB

10:00-10:15 Break

11:15-11:30 Break


• Welcome and Introduction• Thomas Bachmann, CEO

• Life Sciences Business• Frederic Vanderhaegen, Executive VP, Head Life Sciences Business• Wendy Lauber, Product Management, Liquid Handling Robotics and Consumables• Ralf Bartl, Program Manager FEMS• Jody M.W. van den Ouweland, Dept. of Clinical Chemistry,

Canisius-Wilhelmina Hospital, Nijmegen, The Netherlands

• Partnering Business• Bernhard Grob, Executive VP, Head Partnering Business

• Innovation at Tecan • Martin Brusdeilins, Executive VP, Head of Development & Operations and CSO

• Summary and Closing Remarks• Thomas Bachmann, CEO

Today’s Speakers

IntroductionThomas Bachmann, CEO

Analyst & Investor Day 2011


Life Sciences Business

Tecan’s Products, Business Structure and Markets

• Focused on all end-user activities• Products marketed under the Tecan

brand through own sales & service organizations and distributors

Partnering Business• Focused on all OEM activities• Products sold by partners under

their own brand

Life Science Research Diagnostics Forensics Applied

Markets


Transition into the new Tecan Group Organization

• The new Tecan Group organization was established to support the execution of our growth strategy

• Strong market orientation with two distinct businesses

• New organization established and lived; transition went very well

• Management and skills strengthened

• Businesses are gaining momentum; positive impacts in markets

Life SciencesBusiness

PartneringBusiness

Focused on all end-customeractivities

Focused on all OEM activities

Development & Operations

LSB ≈ 62% of sales* PB ≈ 38% of sales*

Science &

Technology

* Based on 2010 Group sales from continuing operations


Tecan’s Business is Supported by Megatrends

• Aging population• Increased incidence of diseases such as cancer, diabetes, cardiovascular

diseases etc. stimulate research and development of novel drugs• Increasing volume for routine tests and emerging menu of new specialized

tests

• Emerging Markets• More people with increased access to healthcare• Major investments in healthcare and life science research

• Explosion in biological understanding• The century of biology• Deeper understanding is boosting new research

• Increasing demand from Applied Markets• Forensics: DNA tests as key tool in crime scene investigation• Veterinary: Globalization and concentration of animal production• Food testing: Safety requirements are becoming increasingly stringent• Others: Environment, Crop Science, Cosmetics etc.



PartneringBusiness

Strategic Drivers for Sustainable Profitable Growth

High-Value Services & Consumables

Increased Innovation to Drive Organic Growth

Geographic Expansion into Growth Markets

Diversified Industry Segments & Broad Application Spectrum

In-Licensing and M&A Opportunities

Expanded Project Pipeline

Sales ChannelLeverage

Life Sciences BusinessFrederic Vanderhaegen, Executive Vice President Head Life Sciences Business



11

Vision and Strategy Strengthening the core business

Market expansion and brand leverage

Sample Prep for Mass Specas a new innovation focus

Agenda


Research Laboratories:Academic & commercial discovery and development

Clinical Laboratories:Biological sample preparation & automation

Applied markets:Environmental & forensics,…

A leading global provider

of automated liquid

handling and detection

solutions with an added

focus in the clinical mass

spectrometry workflow

Life Sciences Business


Life Sciences Business - a global organization

• 33 Application specialists

• 122 Sales representatives

• 223 Customer supports

≙ 45% of total LSB employees≙ more than 1/3 of Tecan Group employees


Covering a wide range of research and IVD workflows

Gene Synthesis

Amplification& PurificationAmplification

& Purification

Gene CloningGene

Cloning

Gene ExpressionGene

Expression

Sequencing, SNP & WGA Analysis

Sequencing, SNP & WGA Analysis

Molecular DiagnosticsMolecular

Diagnostics

Expression ProfilingExpression

Profiling

ProteinProductionProtein

Production

ProteinPurificationProtein

PurificationModification & Formulation

ADME & Functional Assays

ADME & Functional Assays

Protein &BiomarkerIdentification

Protein &BiomarkerIdentification

DiagnosticImmunoassay &Biomarkers

Cell IsolationCell

Isolation

CellExpressionCell

Expression

Cell Passage& ProductionCell Passage

& ProductionLocalization &Translocation

High ContentScreeningHigh Content

Screening

CellularMolecularDiagnostics

CytometryFunctional AssaysFunctional

AssaysCell Typing &Chemistry

Small MoleculeSynthesis &Combichem

Small MoleculeSynthesis &Combichem

Small MoleculePurification &Identification

Activity & SAR AssaysActivity &

SAR Assays

ADMET & Tox AssaysADMET &

Tox Assays

ProductionQA/QCProduction

QA/QCICD & ClinicalChemistry

Sample Prep Assay Analysis

Gen

omic

s

blue border line boxes: product & processred border line boxes: IVD segments

Prot

eom

ics

Cel

lB

iolo

gySm

all

Mol

ecul

es


Structure of Tecan’s current Life Sciences Business

Sales by product segment

44%

37%

12%7%

Sales by geography

JapanAsia Pacific

EuropeUS

37%

19%

9%

23%

12%

Biopharma LIHACD LIHADETEServiceConsumables


Why refine our strategy?

• Tecan’s current core market is estimated to grow at low single digits and competitive pressure is expected to increase

• Tecan wants to outpace market growth

• Tecan has successfully focused on developing complex, high-end platforms - yet, a niche market

• Microarray-based technologies are being replaced by Multiplex PCR and Next Gen Sequencing

• Tecan did not fully capture growth potential from emerging countries

Tecan needs to pursue new adjacent opportunities, beyond liquid handling and readers to reach double digit growth in Life Sciences Business


The strategic review process identified 4 areas of focus:

Adjacencies in scope: assessed, validated, selected

High-end platform

HP & Attana

Australia & China

Sample prep for

Mass Spec

Core & Prioritized Adjacencies

Strategic priorities


18




Agenda


New high performance plate reader infinite M1000 Pro

• Multimode plate readers are one of the fastest growing segments within the lab automationmarket

• The new M1000 Pro multimode reader positionsTecan to exploit this potential and accelerategrowth with a unique set of customer benefits:

• Compatibility with Tecan‘s patent pending µl analysis tool Nanoquant - saves precious samplesand analysis time

Inst

rum

ents

Tecan‘s most flexible Quad4 Monochrometor™-basedmicroplate reader for drug discovery and assay development


Why is Alphascreen important to Tecan?

• Alphascreen is a widely applicable assay(chemistry) platform for drug discovery and appliedresearch applications

• Alphascreen assays offer researchers high sensitivity combined with a significantly simplifiedworklflow

• The use of Alphascreen assay platform isprojected to double within the next 3 years1*

• The unique Tecan solution on infinite M1000 Pro addresses key customer needs in both drugdiscovery and research applications and opens up both growth areas for Tecan

Inst

rum

ents

1* Source HTStec: Multi-Mode Microplate Reader Trends 2011

New Alphascreen read mode expands market reach intoadvanced drug discovery applications


Air Displacement Pipetting Technology for theFreedom EVO®

• Disposable tip only system: Reduced risk of contamination

• Higher throughput: No washing steps in-between pipettingsteps

• Lower maintenance costs: No tubing and valves for the liquid path

• More convenient: No liquid logistics for system liquid and waste compared to liquid displacement technologies

By delivering the best of both worlds, Tecan increases its addressable market

Free

dom

EV

O®


Customized Solutions

Customized Solutions continue to strengthen our position in high-end automated solutions

Free

dom

EV

O®

High throughput sample preparation for flow-cytometry

• Customer: Pharma project / Japan

• Industry: Contract Research Laboratory

• Revenue: 1.9 Mio. CHF


Customized Solutions

Physiology monitoring of microbiological cultures:

• Customer: Gov. project / France

• Industry: Academic Laboratory

• Revenue: 470 k CHF

Customized Solutions enable unique applications via specialized hardware development

Free

dom

EV

O®


Sample aliquoting for Biobanking applications

• Biobanking is currently growing driven by population based Biobanks and Pharmabiobanks

• Tecan well positioned thanks to:• Presence in key reference labs such as UK

Biobank and the Karolinska Biobank• Tube inspection unit• TIG expertise• Partnership with reagents providers

Tecan well positioned to capture Biobanking growth

Free

dom

EV

O®

December 1, 2011 / p25 / Analyst & Investor DayNovember 19, 2009 / p25 / Analyst & Investor Day

30 November, 2011, p 25Myrius Strategy for Success

The new Tecan Myrius powered by MyControl


Myrius® Value Propositions to our CustomersP

latfo

rms

The Myrius Platform fulfills unmet market needs and brings value to our customers

• Simple user interface with integrated touch screen

• Web based technologies for monitoring, providing a walk-away system

• Instant pipetting technology on the touch screen allowing real-time action



latfo

rms


• Trans ROMA allowing the connection of 2 pipetting platforms

• True parallel processing with Trans ROMA

• Transport (lateral movements of carriers between chassis)



latfo

rms


• Higher Deck capacity compared to Freedom EVO

• Easy integration of 3rd party devices; increases TIG profitability

• Modular arm configuration and worktable concept

• Integration of detection devices and Tecan modules


New Consumables products 2011

New Consumable products drive growth in all market segments

Con

sum

able

s

February 2011 May 2011 September 2011 October 2011

Life Science Research

Clinical Diagnostics

3rd Party

5ml Disposable Tip forLiquid Handling Arms

25ml trough for maximum reagent recovery

Sterile PurityDisposable Tips

Filtered MCA 384 tips in additional sizes


Nested Disposable Tips for MCA96

• Product launched: January 2009

• Proprietary product developed by and exclusively sold through Tecan

• Approximately 100 MCA 96 systems sold annually

New consumable product lines as growth drivers in Life Science Research market segment

Con

sum

able

s

0.0

10.0

20.0

30.0

40.0

50.0

60.0

mio

. tip

s2007 2008 2009 2010 2011

MCA96 Disposable Tips sold


New Consumables products

Tecan QC Kit in conjunction with market leader Artel enables new Service businessopportunities

Tecan QC kit includes reagents and consumables that enable more revenue pull through from our platforms.

Con

sum

able

s

Microplates Tecan reader SoftwareDye solutions

Highly precise, calibratedand barcoded opticalmicroplates in 96&384well format. Manufacturedby Corning, co-brandedwith Tecan and Artellogo, distribution byTecan.

Color dye solution, manu-factured by Artel. Co-branded packaging, distribution for Tecan products by Tecan.

Infinite F50 entry levelfor 96 well plate

Infinite F200 mid levelfor 384 well plate

Sunrise: alreadyvalidated by Artel

Analysis softwareconsisting of ArtelDLL as core, embedded intoEVOware SW.

Consumables Kit components

Reagents: Color Dye Solution

•Tecan and ArtelCo-Branded

Highly PreciseOptical Microplate

•Calibrated

•Barcoded

Tecan MicroplateReader

•Infinite F50

•Infinite F200

•Sunrise

Fully IntegratedSoftware

•Embedded intoFreedom EVOware®

Software


Customers rely on our Service

• Our instruments are integrated in high-value lab processes and workflows preparing assays, performing measure-ments of those assays, and producing results

• Downtime = lost production time = loss of money and information

• 24’000 customer interactions per year

• Helpdesks and Expertlines in US and Europe and 180 Field Service Engineers and Specialists

Service is a Tecan attitude and a profitable business

Cus

tom

erS

ervi

ce


What is „Service“…?

• Hardware support• Installation and warranty

• Preventive maintenance and repair

• Installation- and operational qualification

• Applications support• Set-up and support during the lifetime of the instrument

• Understanding the customer and helpinghim achieve his goals

• Training the customer• To get the maximum out of his laboratory

solution

Supporting our customers throughout the lifetime of their instrument

Cus

tom

erS

ervi

ce


34




Agenda


Strengths of Tecan Sales and Service Channels

• Tecan is global leader in laboratory automation for over 30 years

• With an established Sales and Service network in over 50 countries

• Following our growth strategy, we are leveraging these strengths byoffering innovative 3rd party products to expand and complement ourproduct portfolio

• In 2011, we have established partnerships with HP and Attana to bring their products to the Life Science Market


Direct Digital Titration – Generation of IC50 Curves

• The IC50 is the concentration of an inhibitor where the response (or binding) is reduced by half

• IC50 curves are used to determine and rank the potency of a series of test compounds

• Compounds are diluted in a series of steps

• Tested in a biological assay that measures their effect• Receptors • Enzyme assay• Ion channel

• Compares a series of IC50’s against a standard compound for a particular target to determine a compound’s relative potency

Introduction to the HP D300 Digital Dispenser

Simplified solution for drug titrations in the Drug Discovery Market


HP Value Proposition

• Reduce cost by saving on intermediate plates, tips, DMSO and head count

• Simplifies the workflow and reduces the amount of time required to prepare a plate

• Preserves precious compound

• Give labs many more options for plate formats and the types of experiments that could be run

• Improves scientific results

Bio‐assay workflow

HP Direct Titration

Drug concentrate

Drug concentrate

Bio‐assay with titration

series


series

Drug formattingDrug formatting Diluent & plate preparation

Diluent & plate preparation

Serial dilution operations


Daughter plate replication


Tape/Untape; Mix; Shake; Spin; etc;


ReadReagents

Intermediate dilution in media or aq.


Bio‐assay workflow

HP Direct Titration

Drug concentrate

Drug concentrate


series


series

Drug formattingDrug formatting Diluent & plate preparation

Diluent & plate preparation







ReadReagents


Intermediate dilution in media or aq.H

elw

ettP

acka

rd

Simplified solution for drug titrations in the Drug Discovery Market


Early Access Customer Testimonials

• „For me, it really does revolutionize the way we do drug discovery — taking the process and bringing itback to the researchers is a real tremendousadvance,”

- Robert Jordern, SIGA Technologies Silicon Valley / San Jose Business Journal March 4, 2011

Robert Jorden, SIGA Technologies

• „Digital titration replaces analog serial dilution; thecontrol of discrete numbers of drops in every well independently enables innovative experimental designs. Makes the theoretical practical“

- Dan Thomas, GSK The Impact of Non-Contact PicoliterDispense Technology in the Elimination of Serial Dilution; SBS, 27.March

Hel

wet

tPac

kard

The Voice of the Customer from the Biotech Market


39




Agenda


China Strategy

• Fueled by public sector spending and increasing desires for world-class research capabilities, Tecan’s potential market in China is growing at a CAGR of 18%

• Tecan used a robust strategic process to identify most attractive segments to generate above market growth

Prioritization Criteria

Market size

Growth rate

Tecan position

Competitive intensity


Tecan will expand its business in China pursuing a 4 steps plan

• Establish direct “sales” model for Academia & key Blood Bank & Applied Market customers

• Create application support capabilities• Strengthening relationship with strategic distributors

• Create universal service interface in China• Strengthen direct service team • Localize disposable sourcing partnership

• Partner with local player to develop local capabilities• Prioritize & determine feasibility to localize operations in China

Enhance direct service

capabilities

Enhance direct sales

capabilities

“Go Local”: Create local

development & manufacturing

capabilities

Execute KOL & marketing strategy

• Develop relationship with industry Key Opinion Leaders • Create “center of expertise” for automation solutions• Expand our marketing activities

1

2

4

3


China go-to-market

• Through building up the network of local dealers, Tecan reduces the reliance on single distributor and penetrate the market more effectively at regional level

• Shift in sales model drives increase in transfer pricing levels

• We are tripling our presence in China over the next 3 years

• Key opinion leader and brand building

TecanRegional distributorLocal dealer

Current margin structure

Future margin structure

Distributors


capabilities


capabilities



capabilities


1

2

4

3


Influencing Law-making

Influencing Users

KOL refers to an independent expert who is not officially related to Tecan but has a strategic relationship with Tecan to drive customers’ preference

Related Organization

End User

RegulatoryAuthority

Influencer

AcademicLeader

Decision maker

Product Branding

Technology Adoption

Policy Formulation

Industry Standard

Establishment


capabilities


capabilities



capabilities


1

2

4

3


44




Agenda

December 1, 2011 / p45 / Analyst & Investor DayMass Spectrometry in the Clinical LaboratoryMass Spectrometry in the Clinical Laboratory

Strengths, Applications, ChallengesStrengths, Applications, Challenges

0101‐‐1212‐‐20112011

JMW van den Ouweland, PhDJMW van den Ouweland, PhDDept. of Clinical ChemistryDept. of Clinical Chemistry

CanisiusCanisius--Wilhelmina HospitalWilhelmina HospitalNijmegen, The NetherlandsNijmegen, The Netherlands


Overview

• brief overview of LC-MS

• LC-MS by SWOT analysis

• areas of application

• drivers of adoption


Historical perspective

• immunoassays 1970s

Increasing use of LC-MS in clinical laboratories over the last 10-15 years

• PCR 1980s

electrospray ionisation (ESI) (Fenn 1980)

• mass spectrometry 1990s


LC-MS : step by step

SAMPLE PREPARATION

CHROMATOGRAPHY

MASS SPECTROMETRY

- dilute & shoot- protein precipitation- liquid-liquid extraction- solid phase extraction- immunoaffinity purification

- quadrupolesingle vs tandem ( sensitivity, dynamic range)

- ion trap- time of flight

- GC- LC


LC-MS by SWOT Analysis


Strengths

• high sensitivity

• high specificity


Sensitivity & specificity

Rosner et al J Clin Endocrinol Metab 2007;92:405

Herold et al. Clin Chem 2003;49:1250

“LC-MS/MS is the method of choice for the measurement of certain steroid hormones, particularly for those which rely on accurate and specific measurement at low concentrations.”


Specificity

R2 : 0.58

Average bias 10.13 nmol/L

Loca

l Cor

tisol

(μg/

dL)

Intensive Care Medicine 2009;35:2151-6 M. Vogeser


Specificity

R2 : 0.58

Average bias 10.13 nmol/L

M. Vogeser


Strengths

• possibility to measure multiple analytes in the same sample simultaneously

• high sensitivity

• high specificity

• near reference methodology in routine setting (isotope-dilution)

• high speed of development at low costs of new assays when compared to immunoassays by IVD companies

• low costs per sample in terms of reagents

• versatility

•compatible with automated sample handling configurations


Weaknesses

• high instrument costs (≈ €250.000,- for LC-MS/MS)- high test volume needed for cost-effective operation

• limited sample throughput in conventional set-up

• serial (batch-wise), non random-access operation

• need for highly skilled personnel for method development, validation, operation and troubleshooting

• lack of clearly defined quality regulations

• limited experience of IVD requirements from MS vendors

• absence or limited availability of CE/IVD approved reagent-kits


Opportunities

• progress towards more user-friendly instruments (with integration of all components into a single system)

• profiling of metabolically related metabolites (context)

• adoption of MS technology by major IVD companies

• broader availability of CE/IVD approved kits for LC-MS/MS analysis

• quantitative measurement of peptides and proteins


Threats

• speed of development of new instruments largely driven by sensitivity needs > hard to keep up with (e.g development of commercially available kits) and requires regular adaptation of routine practice

• growing difficulty finding (skilled) technicians (and experience at an academic level)

• lack of commitment from major IVD companies

• regulatory bodies applying restrictions on using laboratory-developed tests (LTDs or “home-brew”) assays for diagnostic purposes

• competition from innovations in immunoassays or from the introduction of new technologies


Areas of Application in the Clinical Laboratory

• Metabolic disorders ( e.g. acylcarnitines and amino acids in new born screening)

• Therapeutic drug monitoring (e.g. immunosuppressants, antidepressants)

• Drugs of abuse and pain-management testing (e.g. amphetamines, benzodiazepines)

• Endocrinology (e.g. steroids, catecholamines)


25-OH vitamin D measurement by LC-MS

• With annual doubling of requests for 25(OH)D over the last 3-5 years, it has become the number one LC-MS/MS test in many clinical laboratories worldwide.

• High prevalence of vitamin D deficiency, with recognition of its importance in skeletal as well as in non-skeletal disease, including autoimmune-, infectious- and cardiovascular disease.

• LC-MS/MS measures 25OHD3 and 25OHD2 independently.

• Immunoassays show cross-reactivity towards other major circulating vitamin D metabolites and are prone to matrix influences.

• 25OHD testing important for diagnosis of vitamin D deficiency and monitoring of vitamin D supplementation.


Vitamin D requests

vitamine D CWZ

010002000300040005000600070008000

2005 2006 2007 2008 2009 2010

year

num

ber

workload -> sample preparation and analysis time


Sample preparation

• manual manifold

• manual 96-wells format

• semi-automated sample prep

Costs(ROI)

• on-line SPE


Sample preparation for 25OHD by ILE

• rapid and simple sample extraction in 96-well plates

• no need for centrifugation, vacuum / positive pressure systems or robotics

ILE = Immobilized Liquid Extraction

• simple “pipette & shake” approach


Sample preparation for 25OHD by ILE

• Manual 96-wells SPE format 4 h sample preparation time

• Manual 96-wells ILE format 1,5 h sample preparation time

CWZ sept 2011: beta-site test results

• Over 50% time reduction in sample preparation

• First test results show promising

25OHD testing by ILE vs SPE

020406080

100120140160

0 20 40 60 80 100 120 140 160

25OHD (nmol/L) by SPE

25O

HD

(nm

ol/L

) by

ILE ILE = 1,0 x SPE – 0,799

R= 0,944 (P&B regr.)


• Platform stability & longevity (freezing instrument design)- less revalidation of assays & retraining for users- decreased regulatory compliance burden for vendors- allows expansion of vendor-developed test menus- enhanced service & support capabilities

Drivers of adoption of MS in clinical laboratories

• Ease of use- random-access- walk-away- ready-to-use reagent kits- practicability identical to today’s immuno-analyzers

• Automation- development of innovative sample preparation modules- increased sample throughput


• Peptide & protein quantification in addition to low molecular weight (LMW) analytes

Drivers of adoption of MS in clinical laboratories continued

• Full support by IVD industry- reagents & instruments- 24 h repair service

• Laboratory information management system (LIMS) integration

…a step by step process


Development of immuno-analysers

1981 1988 1993 1999

Abbott TDx Abbott AxSymAbbott IMxAbbott

ARCHITECT

20 years

MS


Thank you for your attention


• This presentation gives an overview on Tecan’s front-end sample preparation developments for mass spectrometry (the FEMS project)

Welcome to the World of Sample Preparation for MS!

Replica of an early mass spectrometer, Wikipedia


Global Market for Mass Spectrometry

Source: Strategic Directions International, Global Assessment Report, 11th Edition, October 2010

• Triple Quadrupole: neonatal screening, screening for various deficiencies and forprescription drug abuse• Focus of FEMS

• MALDI-TOF: Identification of pathogens, such as yeast, bacteria and fungi• Existing partnerships for front-end solutions based on Freedom EVO platform

CAGR=8.6%

Mar

ket D

eman

d ($

mili

ons)

Instrument Demand by IndustryMarket Demand for Instruments and Growth

Main Mass Spectrometry Techniques in Hospitals & Clinical

2009


Popular Clinical Tandem LC-MS application examples

• Endocrinology- Hormones, Steroids, Vitamin D, Catecholamines and Metanephrines

• Newborn Screening - Fatty Acid Oxidation Disorders, Amino Acid Profiles, Cystic Fibrosis

• Clinical Toxicology, Pain Management- Amphetamines, Opiates, Cannabis, LSD, Cocaine, Benzodiazepine

• Immunosuppressants- Cyclosporine A, Tacrolimus, Everolimus, Sirolimus


The key customer problems we are addressing

• Eliminate the burden of complicated sample preparation

• Eliminate laborious and error prone manual workflow

• Eliminate the risk of home-brew assays

• Improve robustness and reproducibility

• Enable standardization

• Comply with regulatory standards and requirements


3 phases to pursue the clinical mass spec growth vector

• Automated assay prep and sample extraction

• Automated sample prep

• LC-MS detection

LC-MSKits

Automated Sample PrepPlatform (FEMS) Full Service Solution

Phase 3Phase 1

• Sample extraction

Extraction Plate

Platforms

Additional KitsVitamin D Kit + potentially additional Kits

Phase 2

Additional Kits


How will FEMS change the laboratory landscape?

Vision Bring MS based testing to the same level of ease of use and performance as immunoassays by providing a panel of sample preparation solutions for clinical workflows.

Vision Bring MS based testing to the same level of ease of use and performance as immunoassays by providing a panel of sample preparation solutions for clinical workflows.

Realization• Automation of workflow according to clinical routine standards• Off-the-shelf solutions and standardization

Realization• Automation of workflow according to clinical routine standards• Off-the-shelf solutions and standardization

Impact• Reduce required skill set of employees• Increase reproducibility of results • Increase walk-away time• Move away from “exotic research lab” image towards high-end routine laboratory• Reduce labor costs• Quality improvement by standardization and validated kits• Increased performance• Increased routine usability

Impact• Reduce required skill set of employees• Increase reproducibility of results • Increase walk-away time• Move away from “exotic research lab” image towards high-end routine laboratory• Reduce labor costs• Quality improvement by standardization and validated kits• Increased performance• Increased routine usability


Phase1: Faster market entry of the FEMS Project

• In addition to our dedicated sample preparation solution, we have decided to also develop a DWP based solution for Vitamin D isolation• Earlier market entry

• Get market awareness

• Proof of principle and technology

• Vitamin D testing in a DWP for manual use for any commercial LH-robot

• It is for RUO only (not for IVD)

• It addresses for batch processes

• It targets a higher throughput customer base

• Makes workflows simple to automate


The Vitamin D on DWP product for launch

• Extraction plate with reagents to isolate Vitamin D from serum or plasma

• 96 and 576 tests per kit


Phase 2: Dedicated sample preparation

• Automate clinical sample preparation of small molecules• LC-MS front-end • Full sample/reagent tracking• Highest data comparability and reproducibility• Enable use by low-skilled personnel• Speed up sample preparation/optimize MS runtime• Simplify validation by standardization and IVD kits• Increase reliability and data quality• Consumable-driven business model


Pre-Launch Activities

• Key features• High reproducibility• Excellent protein removal• Automation friendly• Fast

Feedback• High interest in the technology• Speed and simplicity appreciated• Requests for testing received• "That is what is needed."

Feedback• High interest in the technology• Speed and simplicity appreciated• Requests for testing received• "That is what is needed."

Activity•Symposium/Exhibition•6 Beta-sites executed•Launch Q1 2012

Activity•Symposium/Exhibition•6 Beta-sites executed•Launch Q1 2012


• Outstanding consumable-driven product concept

• Builds on Tecan strengths in sample preparation, liquid handling expertise and the strong Tecan brand

• Founded on an exciting proprietary technology

• Significant high margin business potential

• Reduced time to market with plate format

• Further successful activities with partners for MS sample preparation

Summary


79




Agenda


BaseBusiness

ProductSolutionsTechnologies Markets

ChannelsBrand

Business Models,Skills & Resources

AdjacenciesReshape and focus the core business

to take market share

Prioritize a major growth vector by

developing the MS Sample prep market

for DX

Build a culture and infrastructure that better meet market needs + customer

expectations

Distribution of HP, Attana, ...

&

China expansion

We identified 4 priorities that balance and leverage existing product portfolio and sales channels

4 Strategic priorities for Life Sciences Business

Goals: • Double digit sales CAGR• EBIT improvement• Executable• Good risk &

reward balance

Partnering Business UpdateDr. Bernhard Grob, Executive Vice President Head of Partnering Business



Contents

• Tecan’s Current Partnering Business

• Update on various OEM Projects

• Project Acquisition Pipeline


Tecan’s Growing OEM Business

OEM BusinessEnd-user Business

Partnering Business sales Partnering Business as a % of total sales

Components

Instruments, Service & Consumables

37.8%2010

43.7%H1 2011

•Total sales for all periods are from continuing operations only

0

20

40

60

80

100

120

140

160

2005 2008 2009 2010

CH

F (m

io)

CAGR: 10.5% CAGR: 14.4%

30.8%2009

• H1 2011 sales up by 1.0% in CHF and 5.7% in local currencies

• Despite high baseline resulting from special orders in H1 2010


Structure of Partnering Business

55%29%

9%7%Sales by Product Group

Detection

R&D Funding

Liquid Handling

Components

46%

22%

9%6%

17%

Sales by Product Class

Service/Spare Parts

Plastic Consumables

Systems / Instruments

Components

R&D Funding


Tecan’s Broad OEM Offering

Dedicated Solutions

OEM Components

Cus

tom

erS

ervi

ce &

S

pare

Par

tsP

lasticC

onsumables

Platform-based Solutions

Integrated Solutions• Concepts developed by Tecan and showcased to potential partners• Integrating instrument, plastic consumables and enabling reagents

P14 P16Under development


Contents




December 1, 2011 / p87 / Analyst & Investor DayDecember 1, 2011 / p87 / Analyst & Investor Day

P14: Major OEM Agreement

• Contract signed in November 2010

• Tecan to develop and supply next generation blood-banking instrument

• Builds upon established OEM partnership with a global leader

• Program in advanced development stage• Addresses various global customer needs

• Customer feedback on prototype has been positive:• “The design is appealing and meets our needs”

• “It leapfrogs current offerings from a technology and ease-of-use standpoint”

• “It’s the right for solution for our labs”

• “How soon can I have one?”


P16: Major Agreement with New OEM Customer

• P16 program - agreement with new OEM customer, a global leader in a fast growing field of diagnostics, signed in May 2011

• Tecan to develop and supply a next generation dedicated diagnostics instrument

• Sales potential* estimated to be more than CHF 100m over first 5years

• Program on track and in advanced development stage – P1 prototypes in intense testing phase, P2 prototypes in assembly process

• Supply of first instruments for commercial launch projected “within the next 24 months” after signing the agreement in May 2011

• P16 program demonstrates Tecan’s ability and track record with automating diagnostics workflows and with industrialization of R&D projects.

* Upon successful completion of development


Enigma: Point-of-care Molecular Diagnostics

• Tecan will industrialize and deliver commercially manufactured instruments for GSK Europe and Enigma Diagnostic’s global market supplies

• Enigma ML instrument delivers fully-automated results from swab samples in less than 60 minutes at the point of care

• Eddie Gray, President, PharmaceuticalsEurope of GSK said: „The collaboration withEnigma provides GSK the opportunity to offer a more complete solution to the healthcarecommunity and improve patient care throughthe provision of rapid, state of the art diagnostictests.”

• Late stage industrialization activities are currently on-going, includingvalidation and verification of production line and ML units are beingmanufactured and shipped for the start of Enigma‘s clinical studies.


HPV Total SolutionSample Extraction

DNA Extraction 24, 48 or 96 samples

Various Molecular Tests

Expansion of Hologic’s Molecular Laboratory Solutions

New:

Launch of Cervista MTA expands Hologic’s portfolio and allows it to tap into the lower throughput HPV labs (largely un-served with automation)


NeoPlex4(Newborn)

Signed OEM Development & Supply Contracts2010 2011 2012 2013

Liquid Handling SolutionsSupply of 9 instruments

= anticipated commercial supply= commercial supply= R&D and validation

ELISA platform for MUREX line(Infec. diseases)

Detection InstrumentsSupply of 6 instruments

Recently launched:Qubit 2.0(Genomics)

Configuration 1 Configuration 2Configuration 3

(MDx)

Under development / recently launched:DNA Extractor(MDx) High Throughput HTA

Mid Throughput MTA

P16

Enigma ML(PoC MDx)

P14


Our OEM Instrument Partners

Liquid Handling Solutions

Detection Instruments


Contents





Project Acquisition Pipeline for OEM Systems

Share of Solution(# of projects)

Number of Pipeline ProjectsBy Product Group

Dedicated Instruments

Platform-based

Estimated Annual Sales Potential of Instruments (in million CHF)

Liquid Handling

Detection Instruments

>10 million

5-10 million

<5 million

613

Liquid Handling Systems (excluding Detection instruments):

• Currently, an additional 3 new agreementsor amendments to existing agreements forthe addition of new products are undernegotiation

• 3 new agreements signed sinceNovember 2010


Innovation at TecanDr. Martin Brusdeilins, Executive Vice President Head of Development & Operations and CSO


Innovation at Tecan – The New Organization Combines Research, Development and Operations

Innovation&

Incubation

Platform and Product

DevelopmentOperations


PartneringBusiness

Focused on all end-customeractivities

Focused on all OEM activities

Development & Operations

Science &

Technology


Current Technology Portfolio

New Strategic Areas Require a Solid Road Map Approach

Product Line Strategy

Future Product Portfolio

Product Roadmap

Platform Strategy

Technology Gap Analysis

Technology Roadmap


Strategy Determines the Product Road Map…

Example: FEMS

Instruments and Components

Reagents VitD Plate

AutomationFor Plate

Analyte Panel 1

Analyte Panel 2

Analyte Panel 3

Automated Sample Prep

Full Service Solution FEMS

3rd partyproducts

GC & LCValves

Analyte Panel 5

Analyte Panel 4

Analyte Panel 6

Analyte Panel 7

Analyte Panel 8

3rd partyproducts


The Product Road Map Determines the Platform Design

Enabling Technologies

Platform

Products

ET1 ET1 ET1 ET1 ET1 ET1

Collection of plug-and-play fully verified & validated modules to be used in products

Product1 Product2 Product3 Product4

A platform approach must allow frequent low-cost product launches based on an upfront investment into the platform


Example - Liquid Handling Platform

Enabling Technologies

Platform

Products

PMP MCA 96

MCA 384 AirLiHa Detec-

tor PosID

Collection of plug-and-play fully verified & validated modules to be used in products

EVO 75 EVO 100 EVO 150 EVO 200 EVOLyzer


Strategic Alignment of Technology Projects Will Cover the Following Segments

Core Business

LSB Strategy PB Strategy

Corporate Strategy


Seamless R&D and Operations Strategy

• Product Road Map(s) to educate Product Platform design(s)

• Mature technologies to enter development portfolio

• Development of plug & play modules to feed product platforms

• Allowing for continuous stream of derivative products exiting thedevelopment pipeline

• Risk Management Approach for design and technology transfer

• With seamless transition into Operations

• Through early participation of Procurement to support R&D

• Earliest possible design freeze to allow for early technology transferinto operations

Summary and ConclusionThomas Bachmann, CEO



Market Dynamics

• Megatrends are intact

• Strong demand in Emerging Markets

• Continued solid demand in most end markets and regions

Tailwind Headwind

• Financial crisis and increased recessionary fears

• Austerity measures in various countries impacting investments in research and healthcare


Tecan‘s Diversification Provides a Solid Basis

62%

47%

37%12%

4%

69%23%

8%

Sales by region

Sales by product groups

End customersOEM customers

AsiaOther

North AmericaEurope

InstrumentsServices & spare partsPlastic consumables

Sales by distribution channels

38%

Sales by customer segments

PharmaAcademia

DiagnosticsBiotech

16%58%

14%

12%


Accelerating Profitable Growth

2.72.1

8.4

-0.6

-2

0

2

4

6

8

10

12

2007 2008 2009 2010 2011e 2012e 2013e

Sales growth in local currencies*

* Sales 2007-2010 excludingSam

ple Managem

ent

Guidance Outlook

Life

Sci

ence

sB

usin

ess

Part

nerin

gB

usin

ess

• Launch of Air Displacement technology, new detection instruments, Myriusplatform, consumables + first FEMS kit

• Generation of incremental sales with HP and Attana products

• Going direct in China and expansion into other growth markets

• Supply of new instruments to generate incremental sales with existing and new customers

• Continuously expanding project pipeline

• Growing services and consumables business, building on increased installed base of instruments


Confirming Outlook for Full Year 2011

Mid-single-digit sales growth in local currencies

Sales FY 2011 Profitability FY 2011As of March 10, 2011

EBIT Margin of 12-13%Based on average FX rates of:1.30 EUR/CHF and 1.00 USD/CHF

Sales forecast increasedSales growth in local currencies inthe high single digits

Updated guidance as of August 18, 2011

Profitability target confirmedEBIT Margin of 12-13%Based on average FX rates of:1.20 EUR/CHF and 0.85 USD/CHF


Summary and Conclusion

• Megatrends are supporting our business

• Major development projects underway

• Several key product launches in 2012 and 2013

• Well positioned to capture multiple growth opportunities

• Life Sciences Business and Partnering Business - two strong pillars for accelerated profitable growth

Safe Harbor StatementAll statements in this presentation not referring to historical facts are predictions of the future and constitute no guarantee whatsoever of future performances. They are subject to risks and uncertainties including, but not limited to, future global economic conditions, exchange rates, legal regulations, market conditions, activities of competitors and other factors outside the Company’s control.

Tecan Group AG is making all efforts to include accurate and up-to-date information into this presentation. Yet, it cannot be ruled out that omissions or errors might have occurred. Therefore, Tecan Group AG cannot make any representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this presentation. Changes in this presentation can be made any time without notice. All mentioned trademarks are protected by law. © Tecan Group AG, Tecan Trading AG, Switzerland, all rights reserved.

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